Hold Congress Accountable

Knowledge is power. It makes sure people understand what is happening to their country, and how they can make a difference. FreedomWorks University will give you the tools to understand economics, the workings of government, the history of the American legal system, and the most important debates facing our nation today. Enroll in FreedomWorks University today!

Search FreedomWorks

Resources

Blog

Only In Washington: Revenue Killing Revenues

One of the most wearisome tactics from this Most Wearisome Adminstration Ever is its hyper-employment (I know-it's weird seeing "employment" in any context implying an increase in the Age of Obama) of the euphemism "revenues" in an attempt to dupe the public into paying more taxes.

In the hot bed of illogic that is Progressive political reasoning, the theory is that as long as our dear friend the Federal Bureaucratic Behemoth has more money to spend, the citizenry will be just fine. Just like getting a "Pass Go and Collect $200" card in Monopoly, the Progressives whiz right by the fact taking money from tax paying citizens to pay for federal "help" has rather hurtful consequences across the board. This is the omnipresent danger when dealing with people who have been entrenched for years in positions that allow them to be generous with money that isn't their own. On the federal level it becomes weapons-grade poison for the economy.

Add to that the constant fear-mongering about the economic issues facing Congress and the effects of the poison are accelerated.

Consumer sentiment unexpectedly deteriorated for a second straight month to its lowest in over a year in January, with many consumers citing fallout from the recent "fiscal cliff" debate in Washington, a survey released on Friday showed.

The sharp drop in sentiment over the last two months coincides with rancorous federal budget negotiations that have led to higher taxes for many Americans.

For those keeping score at home: Part One: federal revenues are negatively impacting taxpayer revenues, which is giving them less to spend.

A slowdown in sales growth at many big U.S. retailers suggests a clutch of tax hikes enacted this month is already leading consumers to hold back on spending, putting a brake on economic growth.

Sales growth has cooled for three straight weeks when measured from a year earlier in the Johnson Redbook Retail Sales Index, data showed on Wednesday.

Similarly, the ICSC U.S. retail chain store sales index, which is the other major weekly barometer of retail spending, has showed weakening of growth in the last two weeks.

"We can very tentatively say that these numbers look consistent with our view that the increase in taxes at the start of 2013 led to a slowdown in consumer spending," said Daniel Silver, an economist at JPMorgan in New York.

The fact that the slowdown began even before the fiscal cliff-ahem-deal was reached shows that the incessant threat of an economic apocalypse by the Democrats in an effort to force the Republicans to cave has detrimental effects even before the latest tax burden becomes a reality.

So, safeguarding the federal revenue stream reduces the amount of revenue available to consumers and businesses. And where does the federal revenue stream come from?

Exactly.

Only in the diseased mind of a politician who has bought into the "bigger government as good" philosophy does the notion of reducing the revenue for the very people and businesses from which the government's revenue is derived seem plausible.

If only the Progressives were as obsessed with a sustainable economy as they are with sustainable energy, they would realize that this path leads to nothing but a dry, withered corpse of a taxpaying body that brings the whole house of cards tumbling down.

Perhaps some of you who go on and on about liberals and progressives ( which is interesting seeing as how the word progress literally means exactly what it says- to progress and hence a seemingly desirable quality) and their supposed desire to spend spend spend need to look at the party that seems to be held high on a pedestal- the GOP.

Historically the GOP has actually spent more than Democrats over time and what's more ( gasp) they actually spend more on social programs as well.

Just as the GOP and its cheerleaders will need to change their messaging to voters if they care to remain relevant in future elections, what the GOP says- as in continuing to repeat inaccurate assumptions regarding Democrats as big spenders needs to change too.

If President Obama and Senator Reid were actually negotiating in good faith, then one could argue that Speaker Boehner's Plan B was an acceptable, if unpalatable, compromise. After all, it permanently extended the current tax rates for very nearly all Americans, eliminating the annual game of chicken in Congress over whether our taxes will automatically increase.

The fiscal cliff is looming, and as FreedomWorks' President Matt Kibbe pointed out, “The $16 trillion monstrosity that is our current national debt is a product of spending too much, not taxing too little.” We need a plan that includes sequestration as well as reforms to taxation and entitlements. Senator Marco Rubio took to the airwaves last night to discuss just this.

Dear FreedomWorks member,As one of our millions of FreedomWorks members nationwide, I urge you to contact your Representative and urge him or her to vote against Speaker Boehner’s “Plan B” tax plan. This bill, being offered as replacement language for H.J.Res. 66, would prevent automatic tax rate increases for most individuals, but would allow taxes to automatically increase for some higher-income Americans.

Washington, DC- FreedomWorks issued a Key Vote today urging members of Congress to vote “NO” on Speaker of the House John Boehner’s fiscal cliff “Plan B.” The plan offers a permanent extension of current income-tax rates for all except those earning $1 million a year.

In one of the more infamous statements regarding the process in which Democrats sought to force-feed health care reform to the American people, former Speaker of the House Nancy Pelosi quipped, "We have to pass the bill so you can find out what is in it".

President Obama and House Speaker John Boehner are currently negotiating a deficit reduction deal to stop the sequester “cuts.” The main fight is over Obama’s proposal to raise federal income taxes on Americans making over $250,000 a year. While Boehner claims he is opposed to raising the top two income tax brackets, some worry that he will accept a bad tax-hiking deal in order to stop the sequester.

What should Congress do on the Fiscal Cliff? 1) Lock in $1.2 trillion in ten-year sequester savings. 2) Extend ALL current tax rates for one year. 3) Reform taxes and entitlements to avert another debt downgrade. Questions?
P.S. From now on, every debt ceiling increase should be offset by an equivalent amount of spending reductions, in the same bill. No more kicking the can down the road!
That is all.

Taxes hikes are a distraction. It is all about spending.Barack Obama is a master magician. The great ones keep your attention focused on their right hand while they pick your pocket with their left. For a lawyer who voluntarily surrendered his law license, Barack Obama has proven an exceptional ability to frame the public debate.

I’m trying to help a relative get out of a bad fix.He makes $50,000 a year, but Sam has $54,000 (!) of debt on his credit cards. Worse still, he just showed us plans for a $7,500 cruise next year. “Don’t sweat it,” he said, “I still have room on my Visa!” Crazy, right?